Fed Decision Uncertainty Weighs on Gold as Oil Prices Fall

Spot gold and silver prices declined in late-afternoon US trading on Tuesday as sellers maintained pressure ahead of Wednesday's Federal Reserve decision. The Federal Reserve meeting has kept traders uncertain about interest rates, preventing gold from benefiting from lower yields.

The spot price of gold was near $4,027.40 an ounce, down 1.18%, while the spot price of silver was near $57.02, down 2.19% on the session. North American equities closed mixed, with investors rotating out of chip and AI-linked shares and into less crowded earnings winners.

The decline in oil prices reduced the immediate inflation impulse that had pressured gold through yields, but also removed part of the defensive bid tied to chokepoint risk. Traders are watching Wednesday's Fed decision and Chair Kevin Warsh's press conference for guidance on interest rates.